Digital Asset Investments See Inflows After Five Weeks of Outflows

Digital asset investment products have broken a five-week streak of outflows, recording over $644 million in inflows last week. This shift marks renewed optimism in the cryptocurrency market, particularly for Bitcoin, which led the recovery.

Bitcoin Leads the Charge in Investment Inflows

According to a report by CoinShares, Europe’s leading digital assets investment firm, the crypto exchange-traded funds (ETFs) market witnessed significant inflows, reversing the downward trend seen over the past five weeks. This momentum aligns with activity in the U.S. spot ETFs market, where investor demand has surged as Bitcoin prices climb higher.

Data indicates that Bitcoin spot ETFs in the U.S. recorded six consecutive days of inflows between March 14 and March 21, 2025. Notably, BlackRock registered approximately $105 million in net inflows last Friday, while Grayscale’s GBTC saw minor outflows during the same period.

Institutional Sentiment Shifts Positively

“Total assets under management have risen by 6.3% from their low point on March 10th. Notably, every day last week recorded inflows, following a 17-day consecutive run of outflows—signaling a decisive shift in sentiment toward the asset class,” said James Butterfill, Head of Research at CoinShares.

This decisive shift in sentiment comes after digital asset investment products experienced significant losses, shedding over $6.4 billion during the five-week period. The recovery suggests growing institutional confidence in Bitcoin and other cryptocurrencies.

Performance Across Key Cryptocurrencies

While Bitcoin saw the lion’s share of inflows, with institutional investors pouring over $724 million into Bitcoin-related products, other cryptocurrencies experienced mixed performance:

  • XRP: Investment products tied to XRP attracted $6.7 million in inflows.
  • Solana: Solana-related products saw $6.4 million in inflows.
  • Ethereum: Ethereum struggled under selling pressure near $2,000 and recorded $86 million in outflows.

Additionally, short Bitcoin investment products recorded $7.1 million in outflows, marking the third consecutive week of such movement. This trend further highlights a potential bullish sentiment shift among investors.

Market Outlook

As Bitcoin continues to reclaim upward momentum, the broader cryptocurrency sector is benefiting from renewed institutional interest. The recovery suggests that investors are regaining confidence after a prolonged period of outflows. However, challenges remain for some assets like Ethereum, which continues to face downside pressure.

For those interested in cryptocurrencies, investing, and finance, staying updated on market trends is crucial. With inflows signaling a positive shift, the coming weeks could offer additional opportunities for investors looking to capitalize on the renewed optimism in digital asset markets.

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